Investar Holding (ISTR) AI Stock Analysis

• Market Cap: $268.41M
• Dividend Yield: 1.57%
• Average Volume (3M): 37.74K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.87
• Revenue Growth: -0.34%
• EPS Growth: 27.03%
• Country: US
• Employees: 329
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.54
• Shares Outstanding: 9,810,435
• 10 Day Avg. Volume: 35,828
• 30 Day Avg. Volume: 37,740
• PEG Ratio: 0.49
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 1.38
• P/FCF Ratio: 13.98
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 8.88
• 1Y Price Target: $29.00
• Price Target Upside: 6.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $29.00 ▲(6.42% Upside)

Investar Holding's strong financial performance and bullish technical indicators are the primary drivers of its stock score. The reasonable valuation supports the stock's attractiveness. However, the potential risks from the merger-related lawsuits and operational cash flow challenges slightly temper the overall outlook.

Positive Factors

Revenue Growth

The robust revenue growth rate indicates effective market expansion and product adoption, supporting long-term business sustainability.

Merger Approval

The merger approval enhances community banking services, potentially increasing market share and customer base, strengthening competitive position.

Cash Generation

Positive free cash flow growth indicates strong cash generation, enhancing financial flexibility and supporting future investments.

Negative Factors

Cost Management

Decreasing gross profit margins suggest cost pressures, which may impact profitability if not managed effectively, posing a risk to financial health.

Operational Cash Flow

Low operational cash flow conversion indicates potential inefficiencies, which could constrain liquidity and limit growth opportunities.

Merger Lawsuits

Legal challenges related to merger disclosures could delay integration, increase costs, and distract management, affecting strategic execution.

Investar Holding Business Overview & Revenue Model

Company Description

Investar Holding Corporation (ISTR) is a bank holding company based in the United States, primarily engaged in providing a range of banking services through its subsidiary, Investar Bank. The company operates in the financial services sector, focusing on personal and commercial banking, as well as mortgage lending. Investar Holding serves various customer segments, including individuals, small businesses, and corporate clients, offering products such as checking and savings accounts, loans, and investment services.

How the Company Makes Money

Investar Holding generates revenue primarily through interest income from loans and investments, as well as non-interest income from fees and services. The key revenue streams include net interest income, which comes from the interest earned on loans and other financial products, and non-interest income, which is derived from service fees, mortgage origination fees, and other banking services. Additionally, the company benefits from its strategic partnerships and relationships with local businesses and community organizations, enhancing its customer base and contributing to its earnings through increased lending and deposit activities.

Investar Holding Financial Statement Overview

Summary

Investar Holding demonstrates a stable financial performance with strong profitability margins and a balanced capital structure. However, the significant decline in revenue growth and low operating cash flow conversion are areas of concern. The company should focus on improving revenue growth and enhancing cash flow efficiency to strengthen its financial position further.

Income Statement

Investar Holding shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 39.2%, which is concerning. However, the company maintains a healthy gross profit margin of 58.7% and a net profit margin of 14.4%, indicating profitability. The EBIT and EBITDA margins are stable at 17.3% and 18.8%, respectively, showing operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.42 in the TTM period, indicating moderate leverage. The return on equity is 8.96%, which is reasonable for the industry. The equity ratio stands at 9.31%, suggesting a solid equity base relative to total assets. Overall, the company maintains a balanced approach to debt and equity financing.

Cash Flow

Cash flow analysis reveals a slight growth in free cash flow by 2.3% in the TTM period, which is a positive sign. However, the operating cash flow to net income ratio is low at 0.55%, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is strong at 94.9%, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	155.19M	156.52M	141.06M	123.18M	107.99M	105.93M
Gross Profit	93.43M	85.89M	84.38M	105.47M	73.38M	74.51M
EBITDA	30.73M	27.50M	24.21M	48.78M	14.90M	21.91M
Net Income	23.07M	20.25M	16.68M	35.71M	8.00M	13.89M
Balance Sheet
Total Assets	2.80B	2.72B	2.82B	2.75B	2.51B	2.32B
Cash, Cash Equivalents and Short-Term Investments	41.09M	34.12M	393.93M	445.23M	452.05M	303.78M
Total Debt	100.60M	101.02M	85.08M	439.74M	135.66M	175.00M
Total Liabilities	2.51B	2.48B	2.59B	2.54B	2.27B	2.08B
Stockholders Equity	295.30M	241.30M	226.77M	215.78M	242.60M	243.28M
Cash Flow
Free Cash Flow	13.26M	15.42M	25.18M	41.69M	30.16M	10.16M
Operating Cash Flow	14.30M	15.93M	26.25M	42.75M	33.48M	17.75M
Investing Cash Flow	-43.74M	90.06M	-73.49M	-350.99M	53.40M	-148.14M
Financing Cash Flow	-21.53M	-110.08M	38.99M	251.46M	-25.21M	121.07M

Investar Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISTR, the sentiment is Positive. The current price of 27.25 is above the 20-day moving average (MA) of 26.37, above the 50-day MA of 24.68, and above the 200-day MA of 21.29, indicating a bullish trend. The MACD of 0.88 indicates Negative momentum. The RSI at 71.15 is Negative, neither overbought nor oversold. The STOCH value of 60.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ISTR.

Investar Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FVCB	75 Outperform	$250.34M	11.82	8.87%	0.87%	16.68%	322.32%
NWFL	74 Outperform	$267.92M	43.78	3.56%	4.21%	-4.66%	-58.94%
OVLY	72 Outperform	$255.25M	10.57	12.29%	1.97%	5.50%	-5.19%
FUNC	71 Outperform	$258.51M	10.21	13.36%	2.38%	11.72%	55.87%
PVBC	70 Neutral	―	―	5.37%	―	-3.46%	133.45%
ISTR	69 Neutral	$268.41M	12.48	8.53%	1.57%	-0.34%	27.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Investar Holding Corporate Events

Investar Holding Finalizes CFO Employment Agreement

On October 31, 2025, Investar Holding Corporation, through Investar Bank, finalized an employment agreement and a salary continuation agreement with John R. Campbell, who will continue as Executive Vice President and CFO. The agreements, effective the same day, include provisions for salary, incentives, and benefits. Additionally, a Split Dollar Life Insurance Agreement with Campbell was amended. Separately, on October 28, 2025, CEO John J. D’Angelo adopted a stock trading plan to exercise expiring stock options and sell a portion of the shares, effective January 26, 2026.

Investar Holding Gains Approval for Wichita Falls Merger

Investar Holding Corporation announced on October 30, 2025, that it received shareholder and regulatory approvals for its acquisition of Wichita Falls Bancshares, Inc., the parent company of First National Bank. The merger, initially agreed upon on July 1, 2025, will see Wichita Falls merge into Investar, enhancing its community banking services. The acquisition is expected to close by January 1, 2026, pending customary closing conditions.

Investar Holding Faces Lawsuits Over Merger Disclosures

On July 1, 2025, Investar Holding Corporation announced a merger agreement with Wichita Falls Bancshares, Inc., which will see WFB merge into Investar, making Investar the surviving corporation. However, following the announcement, lawsuits were filed by purported stockholders challenging the disclosures in the merger’s Proxy Statement/Prospectus, alleging negligent misrepresentation and concealment. To mitigate potential delays and costs, Investar decided to make supplemental disclosures voluntarily, despite believing the claims are without merit.